ADX Energy Limited (ASX:ADX) Results from the First Target Formation At The Lambouka-1 Well
Perth, Aug 16, 2010 AEST (ABN Newswire) - ADX Energy Limited (
ASX:ADX) (PINK:ADXRF) advises that the Lambouka-1 has encountered the first Birsa sandstone formation at a measured depth of 1,635 meters.
Whilst the presence of an excellent top seal as well as permeable reservoir intervals was highly encouraging, the MWD (measurement while drilling) logs indicates that the first Birsa sandstones encountered are water bearing.
Forward rig operations are to continue drilling the current 12 1/4 "hole section to reach deeper objectives that are not affected by these results.
Following the completion of this hole section, wire line logs will be run and then 95/8" casing will be set prior to drilling into the primary target, the Abiod formation in 8 1/2" hole.
Although the initial results at the Birsa level are disappointing the presence of a reservoir and a viable seal at this location is encouraging for other prospects in the permits. ADX will continue to report drilling results from the Lambouka-1 well as they occur.
Participants in the Lambouka-1 well are as follows (note 1);
ADX (note 2) 30% Operator
Gulfsands Petroleum Plc (LON:GPX) (PINK:GFPOF) 30%
Carnavale Resources Ltd (ASX:CAV) 20%
XState Resources Ltd (ASX:XST) (PINK:XSTLF) (note 3) 10%
PharmAust Limited (ASX:PAA) 10%
Notes:
1. The respective interests in the Lambouka Prospect area in the Kerkouane Permit and the Pantelleria Licence are based on the completion of all farmin obligations.
2. ADX' interest is held via wholly owned subsidiary Alpine Oil & Gas Pty Ltd.
3. XState Resources Limited interest is held via wholly owned subsidiary Bombora Energy Limited.
Lambouka Prospect Summary
The Lambouka prospect is located in the ADX operated Kerkouane permit offshore Tunisia. The Lambouka-1 drilling location is approximately 160km North East of Tunis in the Sicily channel. Lambouka is a large 70 square kilometre area tilted horst block which contains three potentially hydrocarbon bearing reservoirs. The goal is to drill a safe well to a total depth of 3,000 meters and to fully evaluate the three potential hydrocarbon formation objectives for the well. All three objectives are proven and producing reservoirs in the Sicily Channel and adjacent the Gulf of Hammamet. The nearest offset well is the Dougga- 1 gas condensate discovery in the Kerkouane permit located approximately 22 km SSW of Lambouka-1.
In the event of a discovery it is predicted that the first and shallowest reservoir (Birsa sandstone) could contain oil, whereas the final and deepest reservoir (Abiod carbonate reservoir) would most likely contain gas condensate, analogous to the nearby Dougga gas condensate discovery.
Lambouka straddles two licences (the Kerkouane Permit in Tunisia and the Pantelleria License in Italy) as well as the border between Tunisia and Italy.
The participants in the "Lambouka Prospect Area" which is a limited area defined over the Lambouka prospect within both the Kerkouane and Pantelleria are the same in the subset of both licenses.
Lambouka is one of the largest undrilled prospects in the Mediterranean. By bringing together the Kerkouane and Pantelleria licenses under one operator, ADX has been able for the first time to map the entire structure.
This is the likely reason that Lambouka has remained undrilled until now.
The prospect was originally mapped on 2D seismic then recently reconfirmed and remapped on a new 3D seismic data set. The new state of the art 3D seismic was acquired in March 2010 and a "fast-track processing cube" was completed on the 2 May 2010. The 3D data set was used to select the final drilling location for the Lambouka-1 well.
ADX has estimated the mean prospective resource for the Lambouka prospect at 270 million barrels oil equivalent ("MMBOE"). While a commercial oil discovery will likely result in an independent oil development, it is likely that a gas condensate discovery would be developed in conjunction with Dougga. Dougga has been independently assessed to contain a mean resource of 177 Bcf of sales gas, 28.4 mmbbls of condensate and 9.4 mmbbls of LPG.
It is estimated that the well will take about 35 days to drill and evaluate and cost approximately US$22 million.
About ADX Energy Limited
ADX Energy Limited's (
ASX:ADX) (OTCMKTS:ADXRF) is an Australian Stock Exchange (ASX) listed International Energy Explorer which is soon to become a Producer. The Company's Geographical focus is Onshore Europe and Offshore Mediterranean with a portfolio consisting of recently acquired Production as well as Appraisal, Development and Exploration Assets. ADX's interests are located in Romania, Italy, Tunisia and most recently Austria. The Company's immediate focus is on low cost, low risk, profitable resource commercialisation opportunities onshore and higher cost higher reward offshore projects in the longer term. The Company is headquartered in Perth, Western Australia with additional operating offices in Bucharest (Romania) and soon to be Vienna (Austria). The Company also has representative offices in Italy and Tunisia.
ADX Energy's vision is to establish a stable cash producing platform onshore Europe and develop a number of rapid resource to reserves opportunities as well as low risk exploration potential with access to infrastructure in favourable fiscal and operating environments.
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